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Private Calendar No. 744. 



61sT Congress, I HOUSE OF REPRESENTATIVES. ( Report 



3d Session. \ I No. 2020 



LEASE WITH SENECA INDIANS. 



January 31, 1911. — Committed to the Committee of the Whole House and ordered to 

be printed. 



Mr. Campbell, from the Committee on Indian Affairs, submitted the 

following 

EEPORT. 

[To accompany H. R. 3105G.] 

The Committee on Indian Affairs, to wliich was referred the bill 
(H. R. 31056), to ratify a certain lease witAi the Seneca Nation of 
Indians, report same with the following amendment: 

Amend the bill by adding, after the word "confirmed," in line 7, 
the following: 

That the lessee or his assigns shall file a bond for the benefit of the lessor in the 
sum of twenty-five thousand dollars for the faithful performance of the terms of said 
lease, to be approved by the Secretary of the Interior. 

As so amended the committee recommend that the bill do pass. 

In the opinion of the committee there is no reason why the lease 
referred to by the bill should not be confirmed. In the first place, 
the Seneca Nation of Indians are undoubtedly entirely capable of 
managing their own affairs, and it appears that this lease has been 
authorized by the council and executed by the tribal officials, and 
there appears to be no objections to it among the Indians. The 
Seneca N ation of Indians occupy a different status from the- Indians 
of the West. The Government never has had any interest in their 
lands and exercises only its right as general guardian. 

The Seneca Nation of Indians are about 2,400 in number and 
reside on two reservations, one of which, the Cattaraugus Reserva- 
tion, is covered by this lease. The Senecas are a self-governing 
body under the laws of the State of New York. They were given 
corporate powers in 1848 and since that time, at first annually and 
now biennially, they elect a president, a treasurer, a surrogate, 
marshal, clerk, and 16 councilors. This body, elected by the people, 
contkicts the business of the nation in all matters relating to their 
lands, subject, however, to the approval of the United States Gov- 
ernment. The officers and councilors of the nation are in the main 



\ 



2 LEASE WITH SENECA INDIANS. 

men of coiisidorahlc education ami cntirel}' capable, of looking after 
thoir 1) us in OSS. 

The reservation i.-iIUmI tlu' Allej^any Reservation, not covered by 
this lease, was leased for oil and <:;as j)urposes in 1S97. The lease was 
approved bv the Ciovernraent, and the Indian nation has received 
a large revenue from that source and is still receiving it. The reser- 
vation covered by this lease is 40 or 50 miles from an}^ oil develop- 
ment. The territory around it has been tested and is not considered 
to have any value for oil pnrposes, but for a number of years past 
gas wells have been drilled with considerable success, some of w-nich 
are not far from the reservation line. Jt is thought, therefore, that 
the gas belt may extend into the reservation, and the Finance Oil Co, 
has enough faith in it to make the lease now before the committee. 

The terms of the lease seem to be liberal and as good if not better 
than the terms of leases made generall}' with white people in that 
section of New York. The lessee contracts to tlrill three test wells 
at once. The drilling of these wells will cost from ten to twelve 
thousand dollars. The company has already started drilling one of 
these wells. It also agrees to pay $500 rental until the profits 
arising from tlie ])roducti<)n of gas or oil shall equal that sum. This 
$500 has alr(\i,dy been ])aid to the treasurer of the nation. The 
conij)any agrees to ])ay SlOO annualh' for each gas well producing 
3,000,000 cubic feet of gas per day or less and $200 annually for each 
w'ell producing more than 3,000.000 cubic feet per day. The company 
also agrees to furnish gas to the schoolhouses, eight in number; to the 
Thomas Orphan Asylum, a large institution where several hundred 
orplian children are mauitained; to their churches, five in number; 
and to the Indian farmer upon whose land wells may bo drilled. If 
gas should be found in pavmg quantities I should estimate that the 
amount of gas thus given away to the Indians and to their institutions 
would be worth from $6,000 to $10,000 per annum. There are also 
provisions for paying indivicUial farmers for an}^ damage to crops. 

A cop3^ of the lease is herewith sul)mitted and also letter from the 
Secretary'" of the Interior to the chairman of the Committee on Indian 
Afl'airs of the Senate recommending the passage of the bill as amended. 



Copy of Lease. 



An agreement made in duplicate this 18th day of August, 1910, by and between 
the Seneca Nation of Indians of the Stale of New York, party of the first part, and 
Edward Bolard, of Salamanca, N. Y., party of the second part, Avitnesseth: 

That the parly of the first part in consideration of the sum of $1 and other valuable 
consideration paid by the party of the second part, the receipt of which is hereby 
acknowledged, and of the agreements hereinafter mentioned to be kept and performed 
by said second party, has granted, leased, and demised, and does hereby grant, lease 
and demise, unto the said second party, his heirs and assigns, all that tract or parcel 
of land situate in the coimty of Erie, Cattaraugus, and Chautauqua, State of New 
York, and more ])articularly and commonly known as the Cattaraugus Indian Reser- 
vation, containing, in all, 24,000 acres, be the same more or less, with the exclusive 
right to prospect and drill and operate for oil and gas on the above-described premises. 

To have and to hold the same for the term of 25 years from this date, or as long as 
oil or gas is found in paying quantities. Also the right of way and right to enter upon 
said lands and premises for the purpose of operating for, mining, and removing said 
oil and gas therefrom, and also full ])ower to erect all necessary buildings, machinery, 
tanks, and other fixtures and apparatus upon said premises, which are deemed neces- 
sary for the purpose of procuring and, staring and transporting said oil and gas; and 



LEASE WITH SENECA INDIANS. 



generally to do all things whirh may be nec'essary to do and make elTective the rights 
herein granted, with the full right and power to the second party for the purpose of 
operating and producing oil and gas and delivering the same to market. 
? In consideration whereof the said second party agrees to give to the first party one- 
i eighth of all oil produced on said [jroperty in all wells averaging for one year 100 
* barrels or under. In all wells averaging above 100 barrels for one year the royalty 
i shall be one-sixth to the said Seneca Nation of Indians. 
« All oil to be delivered to pipe lines free of charge to party of the first part. 
> The party of the second part agrees to pay to the party of the first part $500 on the 
execution of this lease, as yearly rental in advance, and $500 per year in advance, as 
2 rental, as long as the party of the second part holds the lease, until such time as the 
income from the wells exceed $500; then, and at such time, the $500 rental shall stop. 

For every gas well the party of the second part agrees to pay to the party of the first 
part $100 per well, in all wells that produce 3,000,000 cubic feet or under per day; 
in all wells that produce over 3,000,000 cubic feet per day, the party of the second 
part agrees to pay the party of the first part $200 per year rental. 

The first party, or the individual owner, has the right to use for agricultural pur- 
poses whatever portion of said premises second party does not use and need for said 
oil and gas purposes herein stated. 

The party of the second part agrees to pay all damages done to all crops of the party 
of the first part, or to individual owners. The party of the second part shall not drill 
any wells within 500 feet of the buildings of any individual, or the Seneca Nation, 
without consent of the owner of said building. 

The party of the first part shall have free use of gas for all school and church and 
public purposes, but the party of the first part must lay lines to wells and keep said 
lines in good condition. In case of a gas well on any individual owner's land, said 
individual owner shall be entitled to necessary gas for domestic purposes free, pro- 
vided said individual owner shall lay lines and maintain the same in a safe and prac- 
tical way and manner. 

The party of the second part further agrees that within 60 days after the granting of 
this lease by the Seneca Nation of Indians, he will commence to drill a well on said 
premises, and will prosecute the same in a business-like way until completed, and iu 
the same way will continue operations until at least three test wells have been com- 
pleted on said property. 

Said second party shall have the right and power to remove the machinery, derricks, 
and all tools and fixtures, at the convenience of the party of the second part. If the 
party of the second part fails to keep and ]:)erform the covenants and agreements 
agreed to by them to be kept and performed, as herein stated, then ihis lease shall be 
null and void. 

The party of the second part agrees that he will apply to Congre.ss at an early date 
to have this lease ratified, and the party of the first part agrees to assist in said ratifica- 
tion. 

The party of the second part can surrender this lease by paying all obligations agreed 
to in this lease to date of surrender. 

It is agreed that the foregoing stipulations and agreements shall apply to and bind 
the heirs, executors, administrators, successors and assigns of the respective parties 
hereto. 

In witness whereof the said first party, the Seneca Nation of Indians, has caused 
this agreement to be signed by its president and clerk, and its corporate seal to be 
hereunto affixed the day and year first above written. 

Frank Patterson, President. 
Eli T. Jimerson, Clerk. 
Edward Bolard. 

State op New York, Cattaraugus County, ss: 

On the 18th day of August, 1910, before me, the subscril)er, personally appeared 
Frank Patterson and Eli T. Jimerson, to me personally known and known by me to 
be the san)e persons described in and who executed the foregoing instrument as 
president and clerk of the Seneca Nation of Indians, and they duly acknowledged to 
me severally that they executed the same; and the said Frank Patterson and Eli T. 
Jimerson, being by me severally didy sworn each for himself, did depose and say that 
the said Frank Patterson is president of said Seneca Nation of Indians and that the 
said Eli T. Jimerson is clerk of said Seneca Nation of Indians, and that he knows the 
corporate seal of said Seneca Nation of Indians; that the president and clerk of said 
Seneca Nation of Indians each signed the said instrument as such president and clerk, 
respectively, by order of the council of said Seneca Nation of Indians duly adopted 



4 LEASE WITH SENECA INDIANS. 

and given; dial the seal lierelo attached is the corporate seal of said Seneca Nation of 
Indians, and was affixed to said instrument by like order of the said council of said 
Seneca Nation; that the signatures of said president and clerk to said instrument are 
the genuine signatures of said president and clerk, respectively. 

Frank Patterson. 

Eli T. Jimerson. 

Acknowledged, sui)s(Til)C(l. and sworn lo iK'l'orc mo the ISth day of August, 1910. 

V. .\. Rhodes, Notary Public. 

.St.\te ok New Yokk, Cattaraiigitfi County, sn: 

On tlie 18th day of August, 1910, before me, the subscriber, personally appeared 
Edward Bolard, to me known and known by me to be the same person described in 
and who executed the foregoing instriunent, and he duly acknowledged to me that he 
executcil the same. 

F. A. Rhodes, Notary Public. 

In council of the Seneca Nation of New York Indians, held at the council at Jimeson- 
town, on the Allegany Reservation, on the 18th day of August. 1910. 

j/cwis Cooper offered the following resolutions, viz: 

Pesolvcd, That we. the council of the Seneca Nation of New York Indians, do hereby 
grant, demise, and lease unto Edward Boland, for oil and gas purposes, according to 
the proposed lease now presented to said counc^il. 

Resolved, That the president and clerk of the Seneca Nation be and they are hereby 
authorized and directed to execute such lease. 

State of New York, Cattaraugus County, 

Allegany Indian Reservation, ss: 
I, Eli T. Jimerson. clerk of the Seneca Nation of New York Indians, do hereby 
certify that I have compared the foregoing copy of resolutions adopted by the council 
of the .«uid Seneca Nation f)f Indians, and now remaining on the minutes and record 
of the proceeding? of said council of said Seneca Nation of Indians, and that the said 
foregoing coi)ies of resolutions are true and correct transcripts of the same and of the 
whole thereof. 

In testimony whereof I have hereunto subscribed my name, as clerk of said Seneca 
Nation of Indians, and affixed the great seal of said nation this 18th day of August, 
1910. 

Eli T. Jimerson, 
Clerk of the Seneca Nation of Indians. 



Department of the Interior. 

Washington, January 2 3, 1911. 

Sir; With your letter of December 18, 1910, you submitted, with request for report 
thereon, an agreement between the Seneca Indians of New York and Edward Holard, 
for the leasing to ."aid Holard of the Cattaraugus Reservation, containing 24,000 acres 
of land. 

This agreement or lease was executed by the parties August 18, 1910, and purports 
to givt the les.see the exclusive right to ])r()spect and drill and operate for oil and gas 
on the described premises "for the term of 25 years from this date, or as long as oil or 
gas is found in paying (juantities." For these'privi leges the lessee agrees to pay $500 
on the execution of the lease, as yearly rental, in advance, and 5500 ])er year in advance 
during the life of the lease until .such time a.'-- the income from the wells exceeds $500, 
and to pay $100 ])er year for each gas well that jjroduces 3,000,000 cubic feet or under 
per day and $200 per year for each gas well thai produces over 3,000.000 cubic feet 
per flay, and to give to the lessor one-ei<>hth of all oil produced on said property in all 
wells averaging for one year 100 barrels or under, and ime-sixth of all oil produced 
from wells averaging above 100 barrels in one y<'ar. 

The terms of the lease have been approved by the council of Seneca Indians and 
the execution thereof authorized. The special agent for these Indians reports that 
he interviewed the president of the Seneca Nation, who stated that the Indians gener- 
ally believed it to be to their advantage to have the reserve tested and developed if 
ga.s or oil .should be found, and that the lease in question is considered by the Seneca 
officials as a fair one and as advantageous to them as could reasonably be expected. 



15 D i.4B/^)/2, 



LEASE WITH SEXECA INDIANS. 5 

While the lease does not so specifically prm-ide, >ft under the act of February 28, 
1910 (31 Stat., 819), all moneys arising under this lease, if approved, will be paid to 
and be recoverable to the United States Indian atcent for the New York Indian Agency. 

So far as the department is able to judge, the rentals and royalties to be paid are fair 
and reasonable. It would have been more satisfactory, however, if the sale of this 
lease could have been advertised and competition secured. 

There is nothing with the papers to show the responsibility of Bolard, the lessee, or 
his financial ability to meet the obligations thereunder. It seems proper in this 
connection to say, however, that the department is informally advised that the le.'^see 
proposes to assign his interest to the Finance Oil Co. of New York, which, it is said, 
IS amply able to handle this proposition. This matter it is understood has been 
presented to your committee. In any event, however, the lessee should be required 
to furnish a satisfactory bond in a sum not less than $25,000, to be approved by the 
Secretary of the Interior, to guarantee his faithful performance of the obligations under 
the lease. 

The papers transmitted with your letter are herewith. 
Very respectfully, 

R. A. Ballinger, Secretarj/. 

Hon. Moses E. Clapp, 

Chairman Committee on Indian Affairs, United States Senate. , 






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